Answer :
Final answer:
Hospitality and tourism businesses build customer loyalty through loyalty programs that offer perks like a free night after accumulating a certain number of points, as seen with Hilton and Marriott. These programs create incentives for customers to return and present transition costs that deter switching to competitors.
Explanation:
One way that hospitality and tourism businesses might build customer loyalty is by participating in loyalty programs. These programs incentivize customers to return and engage with the service provider more frequently. Recognizing the success of such initiatives, competitors often introduce their own versions of these programs.
This concept is applied across various industries. Coffee chains like Tim Hortons provide loyalty cards resulting in a free cup of coffee after a set number of purchases, and cell-phone companies use contract-termination costs and special rates within networks to protect their customer base.
